Know Your Customer
The process of verifying the identity of customers and beneficial owners before establishing a business relationship.
Know Your Customer (KYC) is the process by which regulated entities (banks, fund managers, corporate service providers, payment institutions) verify the identity of their clients and the ultimate beneficial owners of corporate clients. In Singapore, KYC requirements are driven by the MAS Notice on AML/CFT, ACRA's Filing Agent regulations, and global FATF standards. KYC typically requires identity documents, proof of address, source of funds documentation, and ongoing monitoring.
Before incorporating a Pte Ltd, Karman performs KYC on each director, shareholder, and beneficial owner - collecting passport copies, proof of address, and a screening check for sanctions and PEP exposure.